New Reimbursement Account Rules

 The following new provisions apply only to businesses that utilize reimbursements accounts to satisfy, in whole or in part, the HCSO spending requirement. In order for reimbursement account contributions to qualify as health care expenditures, all of the following criteria must be met: 

  • The contributions must be reasonably calculated to benefit the employee;
  • The contributions must remain available to the employee for a minimum of twenty-four months from the date of the contribution;
  • The employee must receive a written summary of each contribution within 15 days of the date of the contribution;
  • Any HRA funds available at the end of 2011 must roll-over to 2012; and
  • Upon separation, employees must be provided with a written summary of their account within 3 days and the funds must remain available for a minimum of 90 days.

Our new Frequently Asked Questions (FAQs) explain these new provisions in more detail. (PDF) Chinese (PDF) Spanish (PDF)